One out of ten homeowners regret buying the home they are living in, most because they cannot they cannot sell their home and move on or can’t afford their monthly mortgage payments according to a new study released by Bankrate, Inc.
Among homeowners who regret having bought their homes, 31 percent said they wish they could sell and move on. Another 22 percent said it was because they couldn’t afford the monthly mortgage payments. Some 23 percent said they have regrets for other, unspecified reasons.
Translated into hard numbers, the poll suggests that 6.75 million homeowners are unhappy and two million feel trapped in their homes because they cannot sell them in the current real estate markets.
The market share of move-up buyers fell last year from 60 to 53 percent, according to the National Association of Realtors. Congress added a $6500 tax credit for existing homeowners to the $8000 credit for first-time buyers last November to provide an incentive to move-up buyers. The credit expired April 30 and reportedly significant numbers of move-up buyers could not take advantage of it because they were unable to sell their current residences or get financing for a new home. The Bankrate poll was conducted June 24 to June 27, nearly two months after the credit expired.
Another factor trapping homeowners in their current homes is their lack of equity and excess of debt. Some 11 million homeowners are underwater according to latest estimates, nearly 15 percent of all homeowners and 25 percent of those with mortgages.
Bankrate executives found the poll to be encouraging. “It’s surprising – and reassuring – to hear 90 percent of homeowners say they don’t regret the purchase of their current homes,” said Greg McBride, CFA, senior financial analyst for Bankrate.com.